Head to Head Analysis: Inspire Medical Systems (NYSE:INSP) & Veeva Systems (NYSE:VEEV)

Veeva Systems (NYSE:VEEV) and Inspire Medical Systems (NYSE:INSP) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Veeva Systems and Inspire Medical Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$3.20 billion	9.52	$908.91 million	$5.41	34.22
Inspire Medical Systems	$911.98 million	1.64	$145.42 million	$4.98	10.49

Veeva Systems has higher revenue and earnings than Inspire Medical Systems. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Veeva Systems, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Veeva Systems has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Veeva Systems and Inspire Medical Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	7	17	0	2.64
Inspire Medical Systems	1	13	5	0	2.21

Veeva Systems presently has a consensus price target of $283.70, indicating a potential upside of 53.25%. Inspire Medical Systems has a consensus price target of $104.24, indicating a potential upside of 99.46%. Given Inspire Medical Systems’ higher possible upside, analysts plainly believe Inspire Medical Systems is more favorable than Veeva Systems.

Institutional & Insider Ownership

88.2% of Veeva Systems shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 10.3% of Veeva Systems shares are owned by insiders. Comparatively, 4.1% of Inspire Medical Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Veeva Systems and Inspire Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	28.44%	14.11%	11.76%
Inspire Medical Systems	15.95%	10.96%	9.32%

Summary

Veeva Systems beats Inspire Medical Systems on 12 of the 14 factors compared between the two stocks.

About Veeva Systems

Veeva Systems Inc. provides cloud-based software for the life sciences industry. It offers Veeva Commercial Cloud, a suite of software and analytics solutions, such as Veeva customer relationship management (CRM) that enable customer-facing employees at pharmaceutical and biotechnology companies; Veeva Vault PromoMats, an end-to-end content and digital asset management solution; Veeva Vault Medical that provides source of medical content across multiple channels and geographies; Veeva Crossix, an analytics platform for pharmaceutical brands; Veeva OpenData, a customer reference data solution; Veeva Link, a data application that allows link to generate real-time intelligence; and Veeva Compass includes de-identified and longitudinal patient data for the United States. The company also provides Veeva Development Cloud, a suite of applications for the clinical, regulatory, quality, and safety functions, including Veeva Vault Clinical, Veeva Vault RIM, Veeva Vault Safety, and Veeva Vault Quality; Veeva QualityOne, a quality and document management, and training solution; Veeva RegulatoryOne, a solution that helps companies to manage regulatory submission content; and Veeva Claims addresses the end-to-end product and marketing claims management process. In addition, it offers professional and support services, including implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; data migration and systems integrations technical consulting services; training on its solutions; and ongoing managed services, such as outsourced systems administration. The company was formerly known as Verticals onDemand, Inc. and changed its name to Veeva Systems Inc. in April 2009. Veeva Systems Inc. was incorporated in 2007 and is headquartered in Pleasanton, California.

About Inspire Medical Systems

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA. It also develops a novel, closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.